Another day, another Biglaw firm reportedly toying with the idea of tinkering with the partnership model. Yet another firm may be thinking about joining the growing ranks of those experimenting with a nonequity partner tier, offering lawyers the prestige of a partnership title without the full financial buy-in (or payoff) that traditionally comes with it. As more firms reconsider compensation structures, retention strategies, and the path to equity, the expansion of nonequity partnership continues to signal a broader shift in how Biglaw defines partnership in the first place.
Cravath was one of the first longtime holdouts to cut bait and create a “salaried partner tier” (i.e., nonequity partners) back in November 2023. That move gave other highly ranked firms permission to tread the same path, including Paul Weiss, which announced its new two-tier partnership plan in March 2024; WilmerHale, which added a nonequity partnership tier in August 2024; Cleary, which announced its own new partnership platform in October 2024; Skadden, which began considering a nonequity level in February 2025; Schulte Roth & Zabel, which announced an income partnership tier in March 2025 (prior to its merger with McDermott); Debevoise, which created its nonequity partnership track in June 2025; Arnold & Porter, which quietly announced its income partner role in December 2025; Sullivan & Cromwell, which rolled out its nonequity program in January 2026; Freshfields, which introduced its nonequity tier in February 2026; and Sidley, which announced its income partnership program in March.
Now, we’re seeing reports that A&O Shearman, one of the most profitable firms in the world by gross revenue, may be in the running to create its own nonequity partner tier. Law.com International has the scoop:
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[F]our senior people with knowledge of the matter said the subject of a nonequity tier had been raised multiple times in leadership discussions, putting the firm on par with a host of other Big Law firms to have mooted the partnership structure change. One of the people said that, as more rivals institute the structure, it would be remiss to ignore it.
Another person close to the firm said the subject is “not under active consideration or imminent”.
One of the people said that a nonequity tier would help facilitate the upward progression of associates, which they said was part of the culture of the firm.
Interestingly, the combined firm of A&O Shearman decided to shelve Shearman & Sterling’s nonequity partnership tier, but now, after just two years, the merged firm may be bringing nonequity partners back into the fold. It seems the firm is attempting to be just like its peers; after all, just 10 firms in the Am Law 100 maintain a single partnership tier these days.
Best of luck to A&O Shearman in its decision-making process on this important issue.
Is your firm planning to increase its nonequity partnership ranks? Please please text us (646-820-8477) or email us and let us know. Thanks.
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A&O Shearman Partners Discuss Introducing Nonequity Tier [Law.com International]
Staci Zaretsky is the managing editor of Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.